Systems and methods for integrating bitumen extraction with bitumen upg...

ABSTRACT

Methods and systems for integrating bitumen extraction processes with bitumen upgrading processes are disclosed. The methods and systems can include recovering an emulsion of hydrocarbon and water from a Steam Assisted Gravity Drainage extraction process, breaking the emulsion, using the water from the emulsion to make steam, upgrading the hydrocarbon from the emulsion using the steam, separating diluent from the upgraded hydrocarbon, and using the diluent to break SAGD-produced emulsion.

This application claims priority to U.S. Provisional Patent Application No. 61/554,818, filed Nov. 2, 2011, the entirety of which is hereby incorporated by reference.

BACKGROUND

Steam Assisted Gravity Drainage (SAGD) is a known process for extracting bitumen from oil sands deposits. In the typical SAGD process, two parallel horizontal oil wells are drilled in the oil sand formation, one about 4 to 6 metres above the other. The upper well injects steam and the lower one collects the heated bitumen that flows out of the formation. The basis of the process is that the injected steam forms a “steam chamber” that grows vertically and horizontally in the formation. The heat from the steam reduces the viscosity of the bitumen, which allows it to flow down into the lower wellbore. The bitumen is recovered to the surface by pumps such as progressive cavity pumps that work well for moving high-viscosity fluids with suspended solids.

In some SAGD processes, the bitumen that flows down to the lower wellbore is accompanied by water formed from the condensation of the injected steam. As a result, the bitumen recovered to the surface by the production well can be in the form of a bitumen-water emulsion. Accordingly, additional steps may need to be carried out to break the emulsion prior to being able to conduct further processing steps on the bitumen, such as bitumen upgrading. These additional steps can increase the overall cost of the process. For example, emulsion breaking materials may need to be purchased and supplied to the SAGD site.

The SAGD process can also be costly due to the need for steam to drive the process. As in all thermal recovery processes, cost of steam generation is a major part of the cost of oil production. A water source is also generally required for creating steam and driving the SAGD process, which can further increase the cost and complexity of the process.

SUMMARY

This Summary is provided to introduce a selection of concepts in a simplified form that are further described below in the Detailed Description. This Summary, and the foregoing Background, is not intended to identify key aspects or essential aspects of the claimed subject matter. Moreover, this Summary is not intended for use as an aid in determining the scope of the claimed subject matter.

In some embodiments, a method of integrating SAGD bitumen extraction techniques and nozzle reactor upgrading techniques is disclosed. The method can include a step of recovering a first quantity of an emulsion of hydrocarbon material and water from a Steam Assisted Gravity Drainage system; a step of adding an emulsion breaker to the first quantity of emulsion and providing a water stream and a dilbit stream; a step of converting the water stream to steam; a step of upgrading the dilbit stream using the steam and providing an upgraded hydrocarbon stream; a step of separating a diluent stream from the upgraded hydrocarbon stream; and a s step of adding the diulent stream to a second quantity of the emulsion recovered from the Steam Assisted Gravity Drainage system.

In some embodiments, a system for extracting and upgrading bitumen is disclosed. The system can include a Steam Assisted Gravity Separation system comprising an injection well and a production well; an emulsion breaking unit comprising a production well inlet, an emulsion breaker inlet, a water stream outlet, and a dilbit stream outlet, wherein the production well of the SAGD system is in fluid communication with the production well inlet of emulsion breaking unit; a steam generation unit comprising a water stream inlet and a steam outlet, wherein the water stream outlet of the emulsion breaking unit is in fluid communication with the water stream inlet of the steam generation unit; a nozzle reactor comprising a steam inlet, a dilbit inlet, and an upgraded hydrocarbon outlet, wherein the steam outlet of the steam generation unit is in fluid communication with the steam inlet of the nozzle reactor and the dilbit stream outlet of the emulsion breaking unit is in fluid communication with the dilbit inlet of the nozzle reactor; and a separation unit comprising an upgraded hydrocarbon inlet and a diluent outlet, wherein the upgraded hydrocarbon outlet of the nozzle reactor is in fluid communication with the upgraded hydrocarbon inlet of the separation unit, and wherein diluents outlet of the separation unit is in fluid communication with the diluent inlet of the emulsion breaking unit.

Various advantages can be achieved from the methods and systems described herein. The methods and systems are integrated such that at least partial self sufficiency is obtained. Various product streams produced throughout the method and system can be reused in the method and system to continue operation of the methods and system. For example, diluent produced by the upgrading of hydrocarbon material can be mixed with the emulsion obtained from the SAGD process to thereby break the emulsion and separate a water stream from the extracted hydrocarbon material. The separated water can then be used to drive either or both of the SAGD and nozzle reactor upgrading processes.

These and other aspects of the present system will be apparent after consideration of the Detailed Description and Figures herein. It is to be understood, however, that the scope of the invention shall be determined by the claims as issued and not by whether given subject matter addresses any or all issues noted in the Background or includes any features or aspects recited in this Summary.

BRIEF DESCRIPTION OF THE DRAWINGS

The preferred and other embodiments are disclosed in association with the accompanying drawings in which:

FIG. 1 is a flow chart illustrating a method of integrating bitumen recovery and bitumen upgrading according to various embodiments described herein;

FIG. 2 shows a cross-sectional view of one embodiment of a nozzle reactor suitable for use in various embodiments of the systems and methods described herein;

FIG. 3 shows a cross-sectional view of the top portion of the nozzle reactor shown in FIG. 2;

FIG. 4 shows a cross-sectional perspective view of the mixing chamber in the nozzle reactor shown in FIG. 2;

FIG. 5 shows a cross-sectional perspective view of the distributor from the nozzle reactor shown in FIG. 2;

FIG. 6 shows a cross-sectional view of another embodiment of a nozzle reactor suitable for use in various embodiments of the systems and methods described herein;

FIG. 7 shows a cross-sectional view of the top portion of the nozzle reactor shown in FIG. 6; and

FIG. 8 is a block diagram illustrating various embodiments of the system disclosed herein.

DETAILED DESCRIPTION

With reference to FIG. 1, a method of recovering and upgrading bitumen material includes a step 1000 of recovering a first quantity of emulsion material from a SAGD system, a step 1100 of adding an emulsion breaker to the first quantity of emulsion to produce a water stream and a dilbit stream, a step 1200 of converting the water stream to steam, a step 1300 of upgrading the dilbit stream using the steam produced in step 1200, a step 1400 of separating a diluents from the upgraded hydrocarbon stream produced in step 1300, and a step 1500 of adding the diluent obtained in step 1400 to a second quantity of emulsion material recovered from the SAGD system. The method and associated system provide a manner for the method and system to be at least partially self sustaining by using steam and diluent produced by the method to continue operating the method. In so doing, the method is made less expensive and becomes less dependent on outside sources for materials required to drive the process.

In step 1000, emulsion material is recovered using a SAGD system. The SAGD system can include any SAGD system or variation on a SAGD system known to those of ordinary skill in the art, and will generally include at least one horizontal injection well and one horizontal production well formed in a deposit of bituminous material. The injection well is typically positioned above the production well, such that bituminous material heated by the steam injected into the deposit via the injection well will flow down to the production well, where it can then be recovered to the surface through the use of pumps. The bitumen deposit in which the SAGD system is established is not limited, and can include, for example oil sands or tar sands deposits, such as those found in the Athabasca region of Alberta, Canada.

Because a portion of the steam injected into the deposit of bituminous material is likely to condense, the bituminous material that flows down to the production well can include water. Water can also be present due to the natural presence of water in the formation that will flow down to the production well with the warmed bituminous material. As a result of this water, the material that is pumped to the surface via the production well can be in the form of an emulsion of water and bituminous material. In some embodiments, the emulsion will include from 25 to 50 wt % bitumen and from 50 to 85 wt % water. Other components can also be present in the emulsion, such as non-bituminous solid particles (e.g., sand, clay, etc) and materials added to the injected steam, such as solvents used for aiding in the extraction of bitumen from the formation.

Upon collection of the emulsion obtained from the SAGD system, steps can be carried out to break the emulsion. In some embodiments, step 1100 includes adding an emulsion breaker to the emulsion to break the emulsion and create two separate phases—a water phase and dilbit phase. Any material suitable for use in breaking an emulsion of bitumen and water can be used. In some embodiments, the emulsion breaker is a hydrocarbon solvent. The hydrocarbon solvent can be a hydrocarbon solvent having a boiling point in the range of from −44 to 800° F. In some embodiments, the hydrocarbon solvent is a paraffinic solvent, such as pentane or hexane. In some embodiments, the emulsion breaker is a hydrocarbon fraction obtained from downstream upgrading of bitumen material derived from the SAGD system, as described in greater detail below.

The emulsion breaker may be added in any amount necessary to break the emulsion and create to separate phases. In some embodiments, the emulsion breaker is added at a ratio of from 5 to 30 (on a volume basis). The emulsion breaker can be added to the emulsion in any suitable manner, such as through the use of a mixing vessel where the emulsion can be stored and emulsion breaker can be introduced into the mixing vessel. Upon introduction, the emulsion and emulsion breaker can be mixed, such as through the use of mixing blades, to promote breaking of the emulsion and separating the material into two distinct phases. When a sufficient amount of emulsion breaker has been added to the emulsion (and, in some cases, suitably mixed with the emulsion), the dilbit phase will rest on top of the water phase. The dilbit phase generally will include the bitumen material and the emulsion breaker. In instances where the emulsion breaker is a hydrocarbon solvent, the dilbit phase can include bitumen diluted in the hydrocarbon solvent.

Once the emulsion has been broken and two distinct phases have been formed, the two phases can then be separated by any suitable technique known to those of ordinary skill in the art. For example, a decanting process can be used to remove the bitumen material phase off the top of the water phase. In some embodiments, mixing of the emulsion and the emulsion breaker and separation of dilbit phase from the water phase can be carried out in the same vessel.

In step 1200, the water phase obtained from breaking the emulsion and separating the dilbit phase can be converted to steam. Any manner of converting the water phase to steam can be used, and will generally include heating the water phase. In some embodiments, the water phase is converted to steam by passing the water through a heat exchanger. Additional water, such as make-up water, can be added to the water phase before converting the water phase to steam.

In some embodiments, the water phase is subjected to water treatment prior to being convened to steam. Water treatment can include any water treatment steps that place the water phase in better condition for being converted to steam. Exemplary water treatment steps include lime treatment, blow down recirculation, de-oiling, and pH optimization.

The steam produced in step 1200 can generally be used in two different applications. In a first application, a portion of the steam produced in step 1200 is used to further drive the SAGD process. Generally speaking, this will include injecting the steam into the injection wells so that the steam can warm deposits of bitumen material and cause the bitumen material to flow into productions wells. In a second application, a portion of the steam produced in step 120 is used to upgrade the dilbit phase obtained in step 110. As described in greater detail below, such upgrading can be carried out in a nozzle reactor. The nozzle reactor allows for the steam and the dilbit to be injected into the nozzle reactor, wherein the interaction of the two streams results in the cracking and upgrading of the hydrocarbon component of the dilbit.

In some embodiments, the steam is converted to superheated steam prior to be used to upgrade the dilbit stream. Any manner of converting the steam to superheated steam can be used. In some embodiments, conversion of steam to superheated steam is accomplished by sending a portion of the steam to a fire heater in order to raise the temperature of the steam to about 1,250° F.

In step 1300, the dilbit stream is upgraded using the steam produced in step 1200. Any manner of upgrading hydrocarbons in a dilbit stream using steam known to those of ordinary skill in the art can be used in the methods described herein. In some embodiments, the steam from step 1200 is used to upgrade the dilbit stream by using a nozzle reactor wherein the dilbit stream and the steam are both introduced into the nozzle reactor and interact in a manner that results in the steam cracking and upgrading of hydrocarbons in the dilbit to lighter, more commercially valuable hydrocarbon products. Any suitable nozzle reactor can be used to promote the interaction between injected dilbit stream and injected steam. In some embodiments, the nozzle reactor can be similar or identical to the nozzle reactor described in U.S. Pat. No. 7,618,597; U.S. Pat. No. 7,927,565, U.S. Pat. No. 7,988,847; U.S. patent application Ser. No. 12/579,193; U.S. patent application Ser. No. 12/749,068; U.S. patent application Ser. No. 12/816,844; U.S. patent application Ser. No. 12/911,409; U.S. patent application Ser. No. 13/227,470, U.S. patent application Ser. No. 13/292,747; U.S. patent application Ser. No. 13/532,453; U.S. patent application Ser. No. 13/589,927; and/or U.S. patent application Ser. No. 13/593,045, each of which is hereby incorporated by reference in its entirety.

FIGS. 2 and 3 show cross-sectional views of one embodiment of a nozzle reactor 100 suitable for use in the methods described herein. The nozzle reactor 100 includes a head portion 102 coupled to a body portion 104. A main passage 106 extends through both the head portion 102 and the body portion 104. The head and body portions 102, 104 are coupled together so that the central axes of the main passage 106 in each portion 102, 104 are coaxial so that the main passage 106 extends straight through the nozzle reactor 100.

It should be noted that for purposes of this disclosure, the term “coupled” means the joining of two members directly or indirectly to one another. Such joining may be stationary in nature or movable in nature. Such joining may be achieved with the two members or the two members and any additional intermediate members being integrally formed as a single unitary body with one another or with the two members or the two members and any additional intermediate member being attached to one another. Such joining may be permanent in nature or alternatively may be removable or releasable in nature.

The nozzle reactor 100 includes a feed passage 108 that is in fluid communication with the main passage 106. The feed passage 108 intersects the main passage 106 at a location between the portions 102, 104. The main passage 106 includes an entry opening 110 at the top of the head portion 102 and an exit opening 112 at the bottom of the body portion 104. The feed passage 108 also includes an entry opening 114 on the side of the body portion 104 and an exit opening 116 that is located where the feed passage 108 meets the main passage 106.

During operation, the nozzle reactor 100 includes a reacting fluid that flows through the main passage 106. The reacting fluid enters through the entry opening 110, travels the length of the main passage 106, and exits the nozzle reactor 100 out of the exit opening 112. A feed material flows through the feed passage 108. The feed material enters through the entry opening 114, travels through the feed passage 106, and exits into the main passage 108 at exit opening 116. The reacting fluid can be a variety of materials, including steam or natural gas.

The main passage 106 is shaped to accelerate the reacting fluid. The main passage 106 may have any suitable geometry that is capable of doing this. As shown in FIGS. 2 and 3, the main passage 106 includes a first region having a convergent section 120 (also referred to herein as a contraction section), a throat 122, and a divergent section 124 (also referred to herein as an expansion section). The first region is in, the head portion 102 of the nozzle reactor 100.

The convergent section 120 is where the main passage 106 narrows from a wide diameter to a smaller diameter, and the divergent section 124 is where the main passage 106 expands from a smaller diameter to a larger diameter. The throat 122 is the narrowest point of the main passage 106 between the convergent section 120 and the divergent section 124. When viewed from the side, the main passage 106 appears to be pinched in the middle, making a carefully balanced, asymmetric hourglass-like shape. This configuration is commonly referred to as a convergent-divergent nozzle or “con-di nozzle”.

The convergent section of the main passage 106 accelerates subsonic fluids since the mass flow rate is constant and the material must accelerate to pass through the smaller opening. The flow will reach sonic velocity or Mach 1 at the throat 122 provided that the pressure ratio is high enough. In this situation, the main passage 106 is said to be in a choked flow condition.

Increasing the pressure ratio further does not increase the Mach number at the throat 122 beyond unity. However, the flow downstream from the throat 122 is free to expand and can reach supersonic velocities. It should be noted that Mach 1 can be a very high speed for a hot fluid since the speed of sound varies as the square root of absolute temperature. Thus the speed reached at the throat 122 can be far higher than the speed of sound at sea level.

The divergent section 124 of the main passage 106 slows subsonic fluids, but accelerates sonic or supersonic fluids. A convergent-divergent geometry can therefore accelerate fluids in a choked flow condition to supersonic speeds. The convergent-divergent geometry can be used to accelerate the hot, pressurized reacting fluid to supersonic speeds, and upon expansion, to shape the exhaust flow so that the heat energy propelling the flow is maximally converted into kinetic energy.

The flow rate of the reacting fluid through the convergent-divergent nozzle is isentropic (fluid entropy is nearly constant). At subsonic flow the fluid is compressible so that sound, a small pressure wave, can propagate through it. At the throat 122, where the cross sectional area is a minimum, the fluid velocity locally becomes sonic (Mach number=1.0). As the cross sectional area increases the gas begins to expand and the gas flow increases to supersonic velocities where a sound wave cannot propagate backwards through the fluid as viewed in the frame of reference of the nozzle (Mach number>1.0).

The main passage 106 only reaches a choked flow condition at the throat 122 if the pressure and mass flow rate is sufficient to reach sonic speeds, otherwise supersonic flow is not achieved and the main passage will act as a venturi tube. In order to achieve supersonic flow, the entry pressure to the nozzle reactor 100 should be significantly above ambient pressure.

The pressure of the fluid at the exit of the divergent section 124 of the main passage 106 can be low, but should not be too low. The exit pressure can be significantly below ambient pressure since pressure cannot travel upstream through the supersonic flow. However, if the pressure is too far below ambient, then the flow will cease to be supersonic or the flow will separate within the divergent section 124 of the main passage 106 forming an unstable jet that “flops” around and damages the main passage 106. In one embodiment, the ambient pressure is no higher than approximately 2-3 times the pressure in the supersonic gas at the exit.

The supersonic reacting fluid collides and mixes with the feed material in the nozzle reactor 100 to produce the desired reaction. The high speeds involved and the resulting collision produces a significant amount of kinetic energy that helps facilitate the desired reaction. The reacting fluid and/or the feed material may also be pre-heated to provide additional thermal energy to react the materials.

The nozzle reactor 100 may be configured to accelerate the reacting fluid to at least approximately Mach 1, at least approximately Mach 1.5, or, desirably, at least approximately Mach 2. The nozzle reactor may also be configured to accelerate the reacting fluid to approximately Mach 1 to approximately Mach 7, approximately Mach 1.5 to approximately Mach 6, or, desirably, approximately Mach 2 to approximately Mach 5.

As shown in FIG. 3, the main passage 106 has a circular cross-section and opposing converging side walls 126, 128. The side walls 126, 128 curve inwardly toward the central axis of the main passage 106. The side walls 126, 128 form the convergent section 120 of the main passage 106 and accelerate the reacting fluid as described above.

The main passage 106 also includes opposing diverging side walls 130, 132. The side walls 130, 132 curve outwardly (when viewed in the direction of flow) away from the central axis of the main passage 106. The side walls 130, 132 form the divergent section 124 of the main passage 106 that allows the sonic fluid to expand and reach supersonic velocities.

The side walls 126, 128, 130, 132 of the main passage 106 provide uniform axial acceleration of the reacting fluid with minimal radial acceleration. The side walls 126, 128, 130, 132 may also have a smooth surface or finish with an absence of sharp edges that may disrupt the flow. The configuration of the side walls 126, 128, 130, 132 renders the main passage 106 substantially isentropic.

The feed passage 108 extends from the exterior of the body portion 104 to an annular chamber 134 formed by head and body portions 102, 104. The portions 102, 104 each have an opposing cavity so that when they are coupled together the cavities combine to form the annular chamber 134. A seal 136 is positioned along the outer circumference of the annular chamber 134 to prevent the feed material from leaking through the space between the head and body portions 102, 104.

It should be appreciated that the head and body portions 102, 104 may be coupled together in any suitable manner. Regardless of the method or devices used, the head and body portions 102, 104 should be coupled together in a way that prevents the feed material from leaking and withstands the forces generated in the interior. In one embodiment, the portions 102, 104 are coupled together using bolts that extend through holes in the outer flanges of the portions 102, 104.

The nozzle reactor 100 includes a distributor 140 positioned between the head and body portions 102, 104. The distributor 140 prevents the feed material from flowing directly from the opening 141 of the feed passage 108 to the main passage 106. Instead, the distributor 140 annularly and uniformly distributes the feed material into contact with the reacting fluid flowing in the main passage 106.

As shown in FIG. 5, the distributor 140 includes an outer circular wall 148 that extends between the head and body portions 102, 104 and forms the inner boundary of the annular chamber 134. A seal or gasket may be provided at the interface between the distributor 140 and the head and body portions 102, 104 to prevent feed material from leaking around the edges.

The distributor 140 includes a plurality of holes 144 that extend through the outer wall 148 and into an interior chamber 146. The holes 144 are evenly spaced around the outside of the distributor 140 to provide even flow into the interior chamber 146. The interior chamber 146 is where the main passage 106 and the feed passage 108 meet and the feed material comes into contact with the supersonic reacting fluid.

The distributor 140 is thus configured to inject the feed material at about a 90° angle to the axis of travel of the reacting fluid in the main passage 106 around the entire circumference of the reacting fluid. The feed material thus forms an annulus of flow that extends toward the main passage 106. The number and size of the holes 144 are selected to provide a pressure drop across the distributor 140 that ensures that the flow through each hole 144 is approximately the same. In one embodiment, the pressure drop across the distributor is at least approximately 2000 pascals, at least approximately 3000 pascals, or at least approximately 5000 pascals.

The distributor 140 includes a wear ring 150 positioned immediately adjacent to and downstream of the location where the feed passage 108 meets the main passage 106. The collision of the reacting fluid and the feed material causes a lot of wear in this area. The wear ring is a physically separate component that is capable of being periodically removed and replaced.

As shown in FIG. 5, the distributor 140 includes an annular recess 152 that is sized to receive and support the wear ring 150. The wear ring 150 is coupled to the distributor 140 to prevent it from moving during operation. The wear ring 150 may be coupled to the distributor in any suitable manner. For example, the wear ring 150 may be welded or bolted to the distributor 140. If the wear ring 150 is welded to the distributor 140, as shown in FIG. 4, the wear ring 150 can be removed by grinding the weld off in some embodiments, the weld or bolt need not protrude upward into the interior chamber 146 to a significant degree.

The wear ring 150 can be removed by separating the head portion 102 from the body portion 104. With the head portion 102 removed, the distributor 140 and/or the wear ring 150 are readily accessible. The user can remove and/or replace the wear ring 150 or the entire distributor 140, if necessary.

As shown in FIGS. 2 and 3, the main passage 106 expands after passing through the wear ring 150. This can be referred to as expansion area 160 (also referred to herein as an expansion chamber). The expansion area 160 is formed largely by the distributor 140, but can also be formed by the body portion 104.

Following the expansion area 160, the main passage 106 includes a second region having a converging-diverging shape. The second region is in the body portion 104 of the nozzle reactor 100. In this region, the main passage includes a convergent section 170 (also referred to herein as a contraction section), a throat 172, and a divergent section 174 (also referred to herein as an expansion section). The converging-diverging shape of the second region differs from that of the first region in that it is much larger. In one embodiment, the throat 172 is at least 2-5 times as large as the throat 122.

The second region provides additional mixing and residence time to react the reacting fluid and the feed material. The main passage 106 is configured to allow a portion of the reaction mixture to flow backward from the exit opening 112 along the outer wall 176 to the expansion area 160. The backflow then mixes with the stream of material exiting the distributor 140. This mixing action also helps drive the reaction to completion.

The dimensions of the nozzle reactor 100 can vary based on the amount of material that is fed through it. For example, at a flow rate of approximately 590 kg/hr, the distributor 140 can include sixteen holes 144 that are 3 mm in diameter. The dimensions of the various components of the nozzle reactor shown in FIGS. 2 and 3 are not limited, and may generally be adjusted based on the amount of feed flow rate if desired. Table 1 provides exemplary dimensions for the various components of the nozzle reactor 100 based on a hydrocarbon feed input measured in barrels per day (BPD).

TABLE 1 Exemplary nozzle reactor specifications Feed Input (BPD) Nozzle Reactor Component (mm) 5,000 10,000 20,000 Main passage, first region, entry opening 254 359 508 diameter Main passage, first region, throat diameter 75 106 150 Main passage, first region, exit opening 101 143 202 diameter Main passage, first region, length 1129 1290 1612 Wear ring internal diameter 414 585 828 Main passage, second region, entry opening 308 436 616 diameter Main passage, second region, throat diameter 475 672 950 Main passage, second region, exit opening 949 1336 1898 diameter Nozzle reactor, body portion, outside diameter 1300 1830 2600 Nozzle reactor, overall length 7000 8000 10000

It should be appreciated that the nozzle reactor 100 can be configured in a variety of ways that are different than the specific design shown in the Figures. For example, the location of the openings 110, 112, 114, 116 may be placed in any of a number of different locations. Also, the nozzle reactor 100 may be made as an integral unit instead of comprising two or more portions 102, 104. Numerous other changes may be made to the nozzle reactor 100.

Turning to FIGS. 6 and 7, another embodiment of a nozzle reactor 200 is shown. This embodiment is similar in many ways to the nozzle reactor 100. Similar components are designated using the same reference number used to illustrate the nozzle reactor 100. The previous discussion of these components applies equally to the similar or same components includes as part of the nozzle reactor 200.

The nozzle reactor 200 differs a few ways from the nozzle reactor 100. The nozzle reactor 200 includes a distributor 240 that is formed as an integral part of the body portion 204. However, the wear ring 150 is still a physically separate component that can be removed and replaced. Also, the wear ring 150 depicted in FIG. 7 is coupled to the distributor 240 using bolts instead of by welding. It should be noted that the bolts are recessed in the top surface of the wear ring 150 to prevent them from interfering with the flow of the feed material.

In FIGS. 6 and 7, the head portion 102 and the body portion 104 are coupled together with a clamp 280. The seal, which can be metal or plastic, resembles a “T” shaped cross-section. The leg 282 of the “T” forms a rib that is held by the opposing faces of the head and body portions 102, 104. The two arms or lips 284 form seals that create an area of sealing surface with the inner surfaces 276 of the portions 102, 104. Internal pressure works to reinforce the seal.

The clamp 280 fits over outer flanges 286 of the head and body portions 102, 104. As the portions 102, 104 are drawn together by the clamp, the seal lips deflect against the inner surfaces 276 of the portions 102, 104. This deflection elastically loads the lips 284 against the inner surfaces 276 forming a self-energized seal. In one embodiment, the clamp is made by Grayloc Products, located in Houston, Tex.

When a nozzle reactor as shown in FIGS. 2 through 7 is used to upgrade the dilbit stream using steam, the dilbit stream can be introduced into the nozzle reactor via entry opening 114 of feed passage 108. The steam can be introduced into the nozzle reactor via entry opening 110 of main passage 106, at which point the steam is accelerated to supersonic speed so that it can interact with the injected dilbit stream and crack the hydrocarbon components of the dilbit stream.

An upgraded hydrocarbon stream is provided as a result of step 1300. The upgraded hydrocarbon stream can include light hydrocarbon, molecules formed as a result of cracking heavier hydrocarbon molecules introduced into the nozzle reactor as part of the dilbit stream. The upgraded hydrocarbon stream can also include hydrocarbon molecules that passed through the nozzle reactor without being cracked. Generally speaking, the upgraded hydrocarbon stream will include hydrocarbon molecules having a wide range of molecular weights, such as from 16 to 500. Other components can also be included in the upgraded hydrocarbon stream, including solvent and steam. In some embodiments, the upgraded hydrocarbon stream exits the nozzle reactor at, for example, exit opening 112, where it is collected for further processing.

In some embodiments, step 1300 can be carried out using multiple nozzle reactors. For example, two nozzle reactors can be used in parallel to crack and upgrade components of the dilbit stream. In such embodiments, the steam produced in step 1200 is split into multiple streams (i.e., one stream for each nozzle reactor) and the dilbit stream is separated into multiple streams (i.e., one stream for each nozzle reactor). The upgraded hydrocarbon streams leaving each nozzle reactor can be combined and subjected to further processing. Optionally, one or more of the upgraded hydrocarbon streams leaving the nozzle reactors can be subjected to separation processing to separate any pitch from the upgraded hydrocarbon streams prior to subjecting the upgraded hydrocarbon streams to further processing.

In some embodiments, the dilbit stream is subjected to a separation step prior to being upgraded in the nozzle reactors. The separation step can separate certain components of the dilbit stream that do not require treatment in the nozzle reactor. For example, the dilbit stream can include some hydrocarbon molecules with a sufficiently low molecular weight. These low molecular weight hydrocarbon molecules are already in a desirable form and therefore do not require further cracking and upgrading. A separation step can remove these hydrocarbons from the dilbit stream. Any suitable separation unit can be used to carry out this separation. In some embodiments, the separation unit is a distillation tower wherein hydrocarbons with a boiling temperature below a certain selected temperature are removed from the dilbit stream. The separation unit can also be a hydrocyclone capable of separating the lighter molecules from the heavier molecules via centrifugal forces. The separation unit can be designed to separate the dilbit stream based on a predetermined cut off temperature, molecular weight, or the like. In some embodiments, it is desirable that predominantly pitch materials be sent to the nozzle reactors, in which case a boiling point temperature cut off of 1,500° F. can be selected (in the case of a distillation tower) or a molecular weight cut off of 500 can be selected (in the case of a hydrocyclone).

In step 1400, the upgraded hydrocarbon stream is processed to separate a diluent stream from the upgraded hydrocarbon stream. The diluent stream separated from the upgraded hydrocarbon stream will generally include hydrocarbon molecules within a certain range of boiling point temperatures or molecular weights. For example, in some embodiments, the diluent stream includes most or all of the hydrocarbon molecules in the upgraded hydrocarbon stream that have a boiling point temperature in the range of from −40 to 800° F. In another example, the diluent stream includes most or all of the hydrocarbon molecules in the upgraded hydrocarbon stream that have a molecular weight in the range of from 58 to 500.

Any manner of separating the diluent stream from the upgraded hydrocarbon stream can be used. In some embodiments, one or more separation units are used to isolate the diluent stream. Any type of separation unit can be used, and in some embodiments, the separation unit is a distillation tower, such as an atmospheric distillation tower or a vacuum distillation tower. In a specific example, the upgraded hydrocarbon stream is first separated in a mid-distillate separation unit which separates mid-distillate from the upgraded hydrocarbon stream. The separated mid-distillate is treated as product, while the light distillate vapor leaving the top of the separation unit is condensed and transferred to a three phase separator. The three phase separator separates the light distillate into three streams: a liquid water stream, a liquid diluent stream, and a gas stream. The water stream and diluent stream generally leave the bottom of the three phase separator, while the gas stream leaves the top of the three phase separator. The water stream can be recycled back in the process for use in the generation of steam. The gas stream can be generally C1 through C5 hydrocarbon (e.g., methane and ethane), hydrogen, and hydrogen sulfide. In order to remove the hydrogen sulfide and provide fuel gas, the gas stream leaving the three phase separator can be treated in an acid gas treating unit.

In step 1500, the diluent stream separated from the upgraded hydrocarbon stream is recycled back in the process to be used in the emulsion breaking step 1100 described in greater detail above. The diluent stream is combined with the product of the SAGD system to break the water/oil emulsion and create a dilbit stream that can be subjected to upgrading. In some embodiments, the diluent stream is combined with make up diluent stream to provide a sufficient amount of the emulsion breaker for step 1100.

In a variation on the separation of the upgraded hydrocarbon material described above, the upgraded hydrocarbon stream is separated with the aim of providing a steam stream that can be recycled back in the process for use in the SAGD system, the nozzle reactors, or both. In such embodiments, the upgraded hydrocarbon stream is separated in a series of separation units. A first separation unit can include a distillation tower that removes mid-distillates from the upgraded hydrocarbon stream. The vapor leaving the top of the first separation unit can be condensed and then introduced into a light distillate separator. The light distillate separator can include a distillation tower configured for separating light distillate from a feed stream. In some embodiments, the light distillate separator separates the liquid light distillate from water, and the water leaves the separator in the form of steam. The liquid light distillate can be combined with the mid-distillate and the combined stream can be treated as product. The steam can be recycled back in the method for use in the injection wells of the SAGD system, for use in the nozzle reactors, or both.

In some embodiments, the separated steam can be superheated as it is recycled back in the method for use in, e.g., the injection wells of the SAGD system. In some embodiments, superheating the steam can be accomplished using hot pitch produced in the method described herein. For example, as described above in greater detail, the upgraded hydrocarbon material leaving the nozzle reactors can be subjected to separation processing in order to remove pitch from the upgraded hydrocarbon steam. This hot pitch can be used to superheat the steam recovered from the separation steps so that superheated steam is provided for the SAGD system.

The above variation can be useful because separation steps that are used to beneficially separate mid and light distillate also separates water from these products in the form of steam. As a result, less steam production is required at other portions of the method, which ultimately provides an overall cost savings due to decreased energy needs. In other methods, the separation steps used to recover the mid and light distillates produce a liquid water stream, which requires heating in order for the water to be reused in the process as steam. In other methods, the separation steps can produce steam, but the steam is typically condensed back to water after separation.

With reference to FIG. 8, a system for carrying out the method described above is shown. The system includes a Steam Assisted Gravity Drainage system 800, an emulsion breaking unit 810, a steam generation unit 820, a nozzle reactor 830, and a separation system 850. An aim of the system is to recover and upgrade bituminous material, while integrating the various components of the system such that the system is at least partially self-sufficient with respect to various materials streams need to drive the system.

The SAGD system 800 can include any SAGD system known to those of ordinary skill in the art, and will generally include at least one injection well and at least one production well. The SAGD system 800 is established at a bituminous material deposit, where the injection well is provided to inject steam into the bituminous material deposit. The production well is positioned below the injection well such that bituminous material heated by the injected steam will flow down to the production well, where it can then be pumped to the surface for further processing. In some embodiments, the material pumped to the surface via the production well includes water in addition to the bituminous material. The water can be present due to the injected steam condensing within the deposit and/or due to water that is naturally present in the deposit. When water is present with the bituminous material, the material brought to the surface via the production well can be in the form of an emulsion.

The emulsion produced by the production well of the SAGD system 810 can be transported to an emulsion breaking unit 810. The emulsion breaking unit 810 generally includes a vessel wherein an emulsion breaker can be added to and optionally mixed with the emulsion produced by the SAGD system 800. When mixing can be used to help promote breaking of the emulsion, the emulsion breaking unit 810 can include any mechanism known to those in the art for mixing an emulsion and an emulsion breaker. In some embodiments, this will include mixing blades or baffles.

In some embodiments, the emulsion breaking unit 810 will include an emulsion inlet that is in fluid communication with the production well of the SAGD system 800 such that emulsion from the SAGD system 800 can be introduced into the emulsion breaking unit 810. The emulsion breaking unit can also include an emulsion breaker inlet for introducing emulsion breaker into the emulsion breaker unit 810.

The emulsion breaking unit 810 can also include a water stream outlet and a dilbit stream outlet. These outlet streams are provided for moving the two phases that are created when the emulsion breaks out of the emulsion breaking unit 810. In some embodiments, the emulsion breaking unit can include mechanisms for separating the two phases and directing them towards their respective outlet. For example, the emulsion breaking unit can include mechanisms for decanting the dilbit phase from off the top of the water phase.

The water stream leaving the water stream outlet of the emulsion breaking unit 810 can be transported to a steam generation unit 820. The steam generation unit 820 can be any type of equipment suitable for converting water steam, including equipment that heats the water and/or uses changes in pressure to help convert water to steam. The steam generation unit 820 can include a water stream inlet that is in fluid communication with the water stream outlet of the emulsion breaking unit 810, and a steam outlet which allows for steam to leave the steam generation unit 820 and be transported to other equipment, such as to the SAGD system 800 described previously and/or the nozzle reactor described in greater detail below. When the steam generated in the steam generation unit 820 is transported to equipment located at different parts of the system, the steam generation unit 820 can include two or more steam outlets. Alternatively, the steam generation unit 820 can include a single steam outlet and a mechanism external to the steam generation unit 820 for dividing the steam stream into two or more streams that are then transported to equipment located at different parts of the system.

While not shown in FIG. 8, the system can include equipment for converting the steam from steam generation unit 820 into superheated steam. In some embodiments, the some or all of steam generated in the steam generation unit 820 can be transported to the unit capable of converting the steam into superheated steam. Any suitable method and equipment can be used for converting the steam to superheated steam.

Also not shown in FIG. 8 is a water treatment unit that can be included in the system. The water treatment unit can be located between the emulsion breaking unit 810 and the steam generation unit 820, and can be used to treat the water obtained from the emulsion breaking unit 810 prior to converting into steam in the steam generation unit 820. Any of a variety of water treatment units can be used. In some embodiments, the water treatment unit is a hot lime with cation exchanger (WAC) and is used to reduce silica content and remove hardness from the water.

In embodiments where the emulsion breaking unit 810 does not provide a sufficient amount of water to satisfy the needs of subsequent processing steps, the system can also include a source of make up water. In some embodiments, the make up water is added to the water obtained from the emulsion breaking unit 810 in the water treatment unit described above, although make up water can be added at other locations prior to the steam generation unit 820.

In some embodiments, a portion of the steam produced in the steam generation unit 820 can be transported to the injection well of the SAGD system 800. The steam can be injected into the bituminous deposit to help drive the SAGD process and the recovery of bituminous material. In some embodiments, the steam diverted to the SAGD system 800 provides all of the steam needed to operate the SAGD system 800. In other embodiments, the steam diverted to the SAGD system 800 is supplemented by another source of steam to provide sufficient steam for carrying out the SAGD process.

Steam generated in steam generation unit 820 (and optionally converted to superheated steam) can be transported to a nozzle reactor 830. The dilbit stream obtained in the emulsion breaking unit 810 can also be transported to the nozzle reactor 830 so that the steam and dilbit stream can each be injected into the nozzle reactor 830 and caused to interact so that the hydrocarbon material in the dilbit stream cracks and upgrades. Any nozzle reactor suitable for upgrading hydrocarbon material using steam can be used. In some embodiments, the nozzle reactor 830 is similar or identical to the nozzle reactors described in greater detail above.

The nozzle reactor 830 will generally include a steam inlet and a dilbit inlet. The steam inlet can be in fluid communication with the steam outlet of the steam generation unit 820. The dilbit inlet can be in fluid communication with a dilbit outlet of the emulsion breaking unit 810. The nozzle reactor 830 can also include an upgraded hydrocarbon stream outlet for transporting upgraded hydrocarbon material out of the nozzle reactor 830.

As shown in FIG. 8, the system can include a dilbit separation unit 835 that is used to separate a portion of the hydrocarbon material from the dilbit stream prior to the dilbit stream being injected into the nozzle reactor 830. In some embodiments, the dilbit separation unit 835 is used to remove light hydrocarbon material from the dilbit stream, such as hydrocarbon material having a molecular weight less than 500 or a boiling point temperature lower than 1,050° F. Hydrocarbon material of this type is considered to already be commercially useful, and therefore does not need to be cracked and upgraded in a nozzle reactor. The dilbit separation unit 835 can be any suitable type of separation unit, including a distillation tower or one or more hydrocyclones. After the light hydrocarbon material has been removed from the dilbit stream, the remainder of the dilbit stream is transported to the nozzle reactor 830 for upgrading.

In some embodiments, the system includes two or more nozzle reactors 830. As shown in FIG. 8, two nozzle reactors 830 are included in the system. When two or more nozzle reactors 830 are included, the dilbit stream and the steam are split into multiple stream (i.e., one stream for each nozzle reactor) so that a dilbit stream and steam stream are provided for each nozzle reactor. As also shown in FIG. 8, an upgraded hydrocarbon separator 840 can be provided for separating certain material from the upgraded hydrocarbon stream. The upgraded hydrocarbon stream produced by one or more of the nozzle reactors can be transported to the upgraded hydrocarbon separator 840 so that pitch material present in the upgraded hydrocarbon stream can be removed. As shown in FIG. 8, the upgraded hydrocarbon stream from only one of the two nozzle reactors is sent to the upgraded hydrocarbon separator 840. The upgraded hydrocarbon separator 840 can be any type of separator capable of separating pitch material from the upgraded hydrocarbon stream, including a distillation tower. After pitch material has been removed from the upgraded hydrocarbon stream, the remainder of the upgraded hydrocarbon stream can be transported downstream for further processing.

As shown in FIG. 8, the upgraded hydrocarbon stream from each of the nozzle reactors 830 is transported into the dilbit separation unit 835. This allows for some of the hydrocarbon material that has passed through the nozzle reactors 830 uncracked or insufficiently cracked to be passed through the nozzle reactor again for another attempt at upgrading the hydrocarbon material. The hydrocarbon material that has been sufficiently cracked in the nozzle reactors 830 is separated from the material to be passed to the nozzle reactors and is routed to further downstream processing.

The upgraded hydrocarbon stream (or, in some embodiments, the light hydrocarbon material separated from the upgraded hydrocarbon stream) can be transported to a separation unit 850 for separation of the upgraded hydrocarbon stream. Generally speaking, the separation unit 850 will include a upgraded hydrocarbon stream inlet that is in fluid communication with the upgraded hydrocarbon stream outlet of the nozzle reactor 840. The upgraded hydrocarbon stream can be separated in a variety of different ways, including separating the hydrocarbon material included in the stream based on molecular weight or boiling point temperature. An aim of the separation unit 850 can be to provide various commercially useful products. Any suitable separation unit can be used for separating the upgraded hydrocarbon stream, and in some embodiments, the separation unit 850 includes two or more separation units.

As shown in FIG. 8, the separation unit 850 includes two separation units. The first separation unit is used to separate the upgraded hydrocarbon stream into a mid distillates stream and a light distillates stream. In some embodiments, the mid distillates include the hydrocarbon compounds having a boiling point temperature in the range of from 383 to 1,110° F., and the light distillates stream includes hydrocarbon compounds having a boiling point temperature less than 1,050° F. The separation unit used for this separation can include, for example, a distillation tower.

The mid distillate stream can be treated as a product stream, while the light distillate stream can be transported to a second separation unit. The second separation unit can be used to separate the remaining components of the light distillate stream. In some embodiments, the light distillates includes a water content, and so one aim of the second separation unit can be to separate the water from the hydrocarbon material. The second separator can be any suitable type of separation unit, and in some embodiments, the second separation unit is a 3-phase separator capable of producing two liquid streams and a gas stream. The light distillate stream can be separated in a 3-phase separator to produce a liquid water stream, a liquid diluent stream, and a gas stream. The liquid diluent stream can include hydrocarbon materials within a given range of molecular weights or boiling point temperatures, such as between. The gas can include C1 through C5 hydrocarbons, hydrogen, and hydrogen sulfide.

In some embodiments, the diluent stream produced by the separation unit 850 is transported back in the system for use as the emulsion breaker in the emulsion breaking unit 810. Accordingly, the separation unit can include a diluent outlet and the diluent outlet can be in fluid communication with the diluents inlet of the emulsion breaking unit 810 (which can also be the emulsion breaker inlet of the emulsion breaking unit 810.

The water obtained from the separation unit 850 can also be reused in the system, such as by transporting the water to the steam generation unit 820. The water can then be converted to steam and used in either the SAGD system 800 or the nozzle reactor 830. The separation unit 850 can therefore include a water outlet that is in fluid communication with the water inlet of the steam generation unit 820.

In some embodiments, the separation unit 850 can includes a second separation unit designed to remove water in the form of steam from the hydrocarbon material in the light distillate stream leaving the first separator. In other words, the 3-phase separator described above is replaced with a separation unit that separates the light distillate stream into a steam stream and a light hydrocarbon stream. Any suitable separation unit can be used to separate the water from the light distillate stream. The steam obtained from such a separation process can be transported back in the system for use in either the SAGD system or the nozzle reactor. The light hydrocarbon stream can be combined with the previously obtained mid distillate stream and the combined stream and be treated as product.

The terms recited in the claims should be given their ordinary and customary meaning as determined by reference to relevant entries in widely used general dictionaries and/or relevant technical dictionaries, commonly understood meanings by those in the art, etc., with the understanding that the broadest meaning imparted by any one or combination of these sources should be given to the claim terms (e.g., two or more relevant dictionary entries should be combined to provide the broadest meaning of the combination of entries, etc.) subject only to the following exceptions: (a) if a term is used in a manner that is more expansive than its ordinary and customary meaning, the term should be given its ordinary and customary meaning plus the additional expansive meaning, or (b) if a term has been explicitly defined to have a different meaning by reciting the term followed by the phrase “as used herein shall mean” or similar language (e.g., “herein this term means,” “as defined herein,” “for the purposes of this disclosure the term shall mean,” etc.).

References to specific examples, use of “i.e.,” use of the word “invention,” etc., are not meant to invoke exception (b) or otherwise restrict the scope of the recited claim terms. Other than situations where exception (b) applies, nothing contained herein should be considered a disclaimer or disavowal of claim scope. The subject matter recited in the claims is not coextensive with and should not be interpreted to be coextensive with any particular embodiment, feature, or combination of features shown herein. This is true even if only a single embodiment of the particular feature or combination of features is illustrated and described herein. Thus, the appended claims should be given their broadest interpretation in view of the prior art and the meaning of the claim terms.

As used herein, spatial or directional terms, such as “left,” “right,” “front,” “back,” and the like, relate to the subject matter as it is shown in the drawings. However, it is to be understood that the described subject matter may assume various alternative orientations and, accordingly, such terms are not to be considered as limiting. Furthermore, articles such as “the,” “a,” and “an” can connote the singular or plural. Also, the word “or” when used without a preceding “either” (or other similar language indicating that “or” is unequivocally meant to be exclusive . . . e.g., only one of x or y, etc.) shall be interpreted to be inclusive (e.g., “x or y” means one or both x or y). Likewise, as used herein, the term “and/or” shall also be interpreted to be inclusive (e.g., “x and/or y” means one or both x or y). In situations where “and/or” or “or” are used as a conjunction for a group of three or more items, the group should be interpreted to include one item alone, all of the items together, or any combination or number of the items. Moreover, terms used in the specification and claims such as have, having, include, and including should be construed to be synonymous with the terms comprise and comprising.

Unless otherwise indicated, all numbers or expressions, such as those expressing dimensions, physical characteristics, etc. used in the specification (other than the claims) are understood as modified in all instances by the term “approximately.” At the very least, and not as an attempt to limit the application of the doctrine of equivalents to the claims, each numerical parameter recited in the specification or claims which is modified by the term “approximately” should at least be construed in light of the number of recited significant digits and by applying ordinary rounding techniques. Moreover, all ranges disclosed herein are to be understood to encompass and provide support for claims that recite any and all subranges or any and all individual values subsumed therein. For example, a stated range of 1 to 10 should be considered to include and provide support for claims that recite any and all subranges or individual values that are between and/or inclusive of the minimum value of 1 and the maximum value of 10; that is, all subranges beginning with a minimum value of 1 or more and ending with a maximum value of 10 or less (e.g., 5.5 to 10, 2.34 to 3.56, and so forth) or any values from 1 to 10 (e.g., 3, 5.8, 9.9994, and so forth).

In view of the many possible embodiments to which the principles of the disclosed invention may be applied, it should be recognized that the illustrated embodiments are only preferred examples of the invention and should not be taken as limiting the scope of the invention. Rather, the scope of the invention is defined by the following claims. We therefore claim as our invention all that comes within the scope and spirit of these claims. 

1. A method comprising: recovering a first quantity of an emulsion of hydrocarbon material and water from a Steam Assisted Gravity Drainage system; adding an emulsion breaker to the first quantity of emulsion and providing a water stream and a dilbit stream; converting the water stream to steam; upgrading the dilbit stream using the steam and providing an upgraded hydrocarbon stream; separating a diluent stream from the upgraded hydrocarbon stream; and adding the diulent stream to a second quantity of the emulsion recovered from the Steam Assisted Gravity Drainage system.
 2. The method of claim 1, wherein the emulsion breaker comprises a hydrocarbon solvent having a boiling point in the range of from −44 to 800° F.
 3. The method of claim 1, wherein the emulsion breaker comprises paraffinic solvent.
 4. The method of claim 1, wherein the emulsion breaker is obtained from an upgraded stream of SAGD-derived hydrocarbon material.
 5. The method of claim 1, wherein the emulsion breaker is added to the emulsion at a ratio of from 5 to 30 on a volume basis.
 6. The method of claim 1, wherein adding an emulsion breaker to the emulsion and providing a water stream and a dilbit stream comprises separating the water stream from the dilbit stream by settling or hydrocycloning the dilbit stream.
 7. The method of claim 1, wherein the water stream is subjected to water treatment prior to being converted to steam.
 8. The method of claim 1, wherein the steam is converted to superheated steam.
 9. The method of claim 1, wherein upgrading the dilbit stream using the steam and providing an upgraded hydrocarbon stream comprises: injecting the steam through a converging then diverging passage of a cracking material injector into a reaction chamber, wherein passing the steam through the converging then diverging passage accelerates the steam to supersonic speed; and injecting the dilbit into the reaction chamber adjacent to the steam entering the reaction chamber from the cracking material injector and cracking the dilbit at least proximate the intersection of the steam and the dilbit.
 10. The method of claim 1, wherein the diluent comprises a hydrocarbon solvent having a boiling point in the range of from −44 to 800° F.
 11. The method of claim 1, wherein hydrocarbon residue is separated from the upgraded hydrocarbon stream prior to separating a diluent stream from the upgraded hydrocarbon stream.
 12. A system comprising: a Steam Assisted Gravity Drainage system comprising an injection well and a production well; an emulsion breaking unit comprising a production well inlet, an emulsion breaker inlet, a water stream outlet, and a dilbit stream outlet, wherein the production well of the SAGD system is in fluid communication with the production well inlet of emulsion breaking unit; a steam generation unit comprising a water stream inlet and a steam outlet, wherein the water stream outlet of the emulsion breaking unit is in fluid communication with the water stream inlet of the steam generation unit; a nozzle reactor comprising a steam inlet, a dilbit inlet, and an upgraded hydrocarbon outlet, wherein the steam outlet of the steam generation unit is in fluid communication with the steam inlet of the nozzle reactor and the dilbit stream outlet of the emulsion breaking unit is in fluid communication with the dilbit inlet of the nozzle reactor; and a separation unit comprising an upgraded hydrocarbon inlet and a diluent outlet, wherein the upgraded hydrocarbon outlet of the nozzle reactor is in fluid communication with the upgraded hydrocarbon inlet of the separation unit, and wherein diluents outlet of the separation unit is in fluid communication with the diluent inlet of the emulsion breaking unit. 